Bitcoin: A viable currency?

U-T EconoMeter panelists consider this cybercash alternative

In this April 3, 2013 photo, Mike Caldwell, a 35-year-old software engineer, holds a 25 Bitcoin token at his shop in Sandy, Utah. Caldwell mints physical versions of bitcoins, cranking out homemade tokens with codes protected by tamper-proof holographic seals, a retro-futuristic kind of prepaid cash. With up to 70,000 transactions each day over the past month, bitcoins have been propelled from the world of Internet oddities to the cusp of mainstream use, a remarkable breakthrough for a currency
— AP

In this April 3, 2013 photo, Mike Caldwell, a 35-year-old software engineer, holds a 25 Bitcoin token at his shop in Sandy, Utah. Caldwell mints physical versions of bitcoins, cranking out homemade tokens with codes protected by tamper-proof holographic seals, a retro-futuristic kind of prepaid cash. With up to 70,000 transactions each day over the past month, bitcoins have been propelled from the world of Internet oddities to the cusp of mainstream use, a remarkable breakthrough for a currency
/ AP

Marney Cox, San Diego Association of Governments

Bitcoin is a new Internet-based, completely digital currency that facilities transactions between people without a middleman. So it substantially reduces transaction costs, making it valuable to everyone including merchants. Bitcoin allows ordinary people to store, transfer and exchange money (bitcoin) without banks or credit card companies, and is faster, cheaper, more accurate, more flexible, and more secure (in some ways) than traditional forms of currency. Bitcoin will not replace money, but it will build on the success of the Internet’s virtual shopping/trading network -- in other words, a potential game changer in an increasingly global marketplace.

Yes
62% (46)

No
38% (28)

Phil Blair, Manpower

Who reading this would take their next paychecks in bitcoins? A hypothetical version of money that has no backing by any government, gold or value at all. What Bitcoin will do is motivate the banking industry, working within governmental controls to perfect and automate the transfer of money via some version of smart phones. I do see the day coming very soon when we will not carry money in our pockets but transfer payments of all kinds via electronics. But it will be real money not fake, made up money that is backed by only promises.

Kelly Cunningham, National University System

As fiat monetary systems (especially including the U.S. dollar) continue to debase national currencies, alternative forms of money become more appealing as standards of exchange. This is particularly significant as the U.S. dollar loses its monopoly power as the world’s reserve currency. Virtual currencies may legitimately serve as "legal means of exchange" with significant advantages as payment networks having vast utility for their currency units. However, a major drawback in Bitcoin currency is not having intrinsic value. Unless the alternative currency can be directly exchanged for gold, silver, oil, “Beanie Babies” or something, it is more speculative asset than currency.

Gina Champion-Cain, American International Investments

Alan Gin, University of San Diego

Because of concern for the stability of the currency in some countries, there will always be demand for alternative forms of money. For decades, the fallback has been the U.S. dollar. But due to improvements in technology, something like the Bitcoin is now an option. Right now, it is in its formative stages, and there is wild activity going on at times which makes it a dicey proposition. But stability will eventually come and it will become a more viable and accepted option.

Stephan Goss, Zeeto Media

Bitcoin is a very disruptive technology and whether or not Bitcoin itself survives, the concept behind it will thrive. Currencies haven’t had any major innovations since moving away from the gold standard. Bitcoin brings forth a powerful way to exchange value that doesn’t rely on governments or banks. I expect Bitcoin and the concept of decentralized currencies to evolve so rapidly that it will be measured in months instead of decades. Ten years from now Bitcoin may no longer be around, but a decentralized method of wealth transfer will be at least of equal size as most of today’s fiat currencies.